— The effects of different grazing land improvement practices on herbaceous production, grazing capacities and their economics were studied in Ejere district, west Shoa zone, Ethiopia. Four different treatments, i.e., application of Urea and Diammonium phosphate (DAP), cattle manure, wooden ash, and a control/no application) were randomly applied to the study plots in three replications for each treatment. All experimental plots were fenced throughout the study period. The application of urea and DAP significantly increased grass (3620.86 kg ha-1) and total biomass production (5742.93 kg ha-1). Of the 6 herbaceous species recorded in the Urea and DAP plots, four of them were grasses with Setaria verticellata having the highest percentage composition (35.54%) while the control plot was dominated by Cyperus rotundus (31.5%) and Cerastium octandrum (31.5%). Less land is required to maintain a tropical livestock unit (TLU) in Urea and DAP applied plots (0.03 ha TLU-1) than in plots applied with other treatments (mean = 0.09 ha TLU-1). Similar to the result of the biological data, the participants of the grassland day rated the Urea and DAP applied treatment best because of the high production of grass. Considering total biomass production, application of manure was advantageous to the farmers due to increased net benefits and the marginal rate of return is above the minimum accetable rate for this sort of treatment. On the other hand, considering grass production alone, application of Urea and DAP was more profitable for farmers as far as they store and sell it in the dry seasons. In conclusion, we recommend a long-term study to examine the effects of the different treatments on productivity of grazing lands, herbaceous species composition, grazing capacities, livestock, the environment, and their economics.